As Wall Street geared up for the next trading session, several key developments shaped investor sentiment, with housing stocks reeling from soaring mortgage rates, the energy sector finding its stride, and a tech giant defying expectations. Meanwhile, all eyes remained fixed on critical inflation data set to drop.
The housing market took a significant hit as the rate on the 30-year fixed mortgage surged above 7% on Thursday. This immediate impact was evident across major homebuilders:
- Toll Brothers saw its shares decline by 1.9%, now off a substantial 21% from its February peak.
- PulteGroup experienced a 2% drop, with its stock down 19% from its February high.
- Hovnanian fell 2.6%, marking a hefty 30% reduction from its high nearly a year ago.
(Image: A stylized chart depicting Hovnanian shares' year-to-date performance, illustrating a downward trend.)
In stark contrast, the energy sector emerged as a beacon of positive performance. Both Brent and West Texas Intermediate crude prices climbed approximately 12% throughout the week, bolstering energy stocks. This makes energy the sole S&P sector in positive territory for the week, up 1.7%. Leaders in this resurgence include:
- Devon Energy, up around 4% for the week.
- Valero, also surging about 4% this week.
CNBC's 'Morning Call' with Morgan Brennan will be closely tracking oil developments starting at 5 a.m. ET.
Tech giant Oracle provided a much-needed lift for the technology space, beating earnings estimates on Thursday afternoon. Its shares initially jumped as much as 7% in extended trading, settling around a 4% rise. This comes as Oracle's stock is still down 56% from its high recorded a year ago.
(Image: A 1-day candlestick chart showing Oracle's stock performance following its earnings announcement, highlighting the after-hours surge.)
The economic calendar's most anticipated event, the Consumer Price Index (CPI) data, is scheduled for release on Friday at 8:30 a.m. ET, with live coverage on 'Squawk Box' featuring Becky Quick, Joe Kernen, and Andrew Ross Sorkin. The Dow Jones consensus forecasts a 0.4% month-over-month increase and an expected annual inflation rate of 3.4%. Interestingly, 60% of participants on prediction market Kalshi anticipate the monthly number to exceed 0.3%, with 12% betting on it surpassing 0.4%.
Finally, grocery behemoth Kroger, operating approximately 2,700 stores nationwide, is set to report its earnings Friday morning around 7:30 a.m. Its shares have seen a tough three months, down over 11%, and are off 25% from their March high.
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